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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: marcher who wrote (90667)	1/21/2008 4:02:42 PM
From: GST	Read Replies (1) \| Respond to of 110194

US rates are being lowered to pump borrowing -- Japanese rates were near zero when their economy was booming - the reasons for our lowering rates and the reason for their lowering rates was not the same at all. Their rates were low to send people away from the yen. Japanese are huge savers and credit card debt played almost no role in their economy. Same for cars -- people in Japan bought cars for cash. Borrowing by consumers was mainly real estate speculation. US is the opposite -- we borrow money for everything we do. We lower our rates while praying to the Supreme economic beings not to crush the dollar. We save little or nothing -- on average. We are a society of debt. Japan is a society of saving. We are a society with a weak currency - need I go on? It is impossible to make sense of the US Japan comparison until it becomes clear that the Japanese economy was in no way similar to our own. China on the other hand is similar to Japan, but they are roaring along and deflation is not likely there at all either.